The head of a housing industry body has said she fears more housebuilders could collapse following Stewart Milne Group entering administration with the loss of more than 200 jobs.

We previously reported that administrators Teneo were appointed on Monday for the housebuilder, which is headquartered in Aberdeen, halting construction on sites across Scotland, with 217 roles being made redundant.

Jane Wood, chief executive of Homes for Scotland, which represents more than 200 members, said she is “very worried” about more firms going bust.

Speaking on BBC Radio Scotland’s Good Morning Scotland programme on Tuesday, she said she is “greatly saddened” by the group going into administration.

Asked if she is concerned more housebuilders could go the same way, she replied: “We are very worried about it and we are worried the social and economic impact is not understood for housing.

"It’s a force for good, it affects all of our lives. It’s a human right, at the end of the day.”

She added: “Our ask would be that the Scottish Government needs to demonstrate that it does recognise the sector’s concerns and takes urgent action – that the provision of new homes for all tenures for everyone in Scotland who wants to live and work here is prioritised because it is urgent now.

“We can’t keep doing the same thing and expecting the houses that we need to be built and our businesses, like Stewart Milne and other housebuilders, to remain sustainable.”

Teneo said in a statement that failure to sell the business or secure a “viable” restructure meant the “difficult” decision was made to place Stewart Milne Group and six Scottish subsidiaries into administration.

Adele MacLeod, of Teneo, said, “The downturn in the UK housing market combined with an extensive sales process not resulting in any viable offers has ultimately led to the need for the directors to place Stewart Milne Group Limited and some of its subsidiaries into administration, regretfully with some immediate redundancies.

“We continue to assess all the options in respect of the group’s Scottish development sites and encourage any party with an interest to get in touch.”

Teneo said “no further construction is being completed, at this time” and people who have reserved a home but not yet moved in will be contacted.

Former Aberdeen FC chairman Stewart Milne set up the eponymous business in 1975.

He said in a statement: “I am devastated by this totally unexpected outcome of the sale process and struggling to accept it, given the profound impact it will have on employees, sub-contractors, suppliers and customers.

“Stewart Milne Group was up for sale and, following significant interest, two bids were submitted. The bank has not accepted either bid and withdrawn its funding.

“I tried everything I could to find a way to achieve a better outcome for the business and the people who depend on it.

“I believe one of the bids could have delivered a comparable, financial return to administration and, crucially, allowed the business to continue to operate, safeguarding hundreds of jobs and protecting livelihoods.”